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As an ethical person seeking the position, you should be honest and faithful at all times. this implies that you should report Jim as having lied to get a job. Remember, ethics is more than friendship, when you include friendship in your decisions, you show favoritism which is unethical in the business environment. With that said, Jim should be reported to the authorities for lying. The only person who can do this is you, his friend since this is the ultimate show of ethical decision making.
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